Gold bars are seen in this file photo.
Iamgold Corp. , a Toronto miner with operations around the world, says it has struck a deal with the government of Suriname in South America to expand the Canadian company's Rosebel gold mine.
Details of the so called Heads of Agreement were not revealed Wednesday. But the deal will form the key elements for a definitive agreement to significantly expand the Rosebel operation.
"Reaching an initial agreement on the terms and conditions necessary for the expansion of Rosebel is a pivotal moment for us," Iamgold president and CEO Steve Letwin said in a release before stock markets opened Wednesday.
"The next steps are to work expeditiously towards the conclusion of a definitive agreement and to complete a feasibility study."
Iamgold has operations in Canada, west Africa and South America. The company's two largest operations are the Rosebel mine and the Essakane mine in Burkina Faso, a country in west Africa.
This fall, the company said it produced 222,000 ounces of gold from continuing operations in its third quarter, up from 195,000 ounces in the same quarter a year earlier.
In its outlook for the year, Iamgold expects 2011 gold production from continuing operations to be within its guidance range of 870,000 to 930,000 ounces.
Rosebel is an open pit mine that began operations in 2004 and produced nearly 400,000 ounces of gold in 2010. The mine is 95 per cent owned by Iamgold and 5 per cent by the Suriname government.